Google, in collaboration with the International Finance Corporation(IFC) released a report, e-Conomy Africa 2020, that sheds light on the potential of Africa’s internet economy, the promising tech entrepreneurs driving innovation, and the growing tech talent across the continent.
According to the report, Africa’s internet economy has the potential to reach $ 180 billion by 2025, accounting for 5.2% of the continent’s gross domestic product(GDP). By 205, the projected potential contribution could reach $ 712 billion, 8.5% of the continent’s GDP. Although Covid 19 is expected to delay economic growth in Africa, the resilience of the internet economy, new government policies and public and private investment will continue to drive this growth in Africa.
Increase in digital connectivity in Africa will boosts the continent’s economic value. Currently the number of people with access to internet has grown to 522.8 million, or 40% of the population. It is estimated that over the next decade, the number will grow by 11%, comprising of 16% of total global amount.
Sectors leading the way in Africa’s digital transformation include fintech, e-commerce, healthtech, media and entertainment, local transportation, food delivery and B2B e-logistics.
The report also noted that venture capital investment in Africa reached an all-time high in 2019, with the first half 0f 2020 closing with $493.5M of total funding.
“Google and IFC have created this report to highlight the role of the digital start-up sector is playing and other factors driving the continent’s growth, in order to showcase and support the opportunities the continent presents,” said Google Africa director Nitin Gajria.